With rising fees,
charges and interest rates, and punishing lending standards, traditional banks
have been turning off car buying consumers for years. As personal-finance
columns often note, there are much friendlier alternatives available -- the
nonprofit community financial institutions called credit unions being one
prominent example. Numbers by the Credit Union National Association report that
around 1.5 million consumers defect from traditional banks to credit unions
each year, having discovered their improved customer service standards.
Nevertheless, stitching
together a full car deal with a great vehicle and a great financing deal from a
credit union can take time. You would need to make separate visits to each
business. This is where community car sales come in.
What
is a community car sale?
Credit unions are all
about the communities that they serve. Unlike regular banks, membership is only
open to eligible groups, usually, those who live in certain communities.
Rather than have car
buying consumers run around from one dealership to another to look for deals,
credit unions often organize community car sales themselves. These are only
open to residents of the immediate community that each credit union works out
of. Credit unions that host these events bring car dealerships in to attend,
with a full lineup of select, quality cars, and they also have their loan
officers standing by to sign off on loans.
If you're wondering
about whether buying at a community car sale really is a better idea than going
out and looking for your own, here's more insight.
The
benefits
You can count on a fair
shake:
Since community car sales are organized by credit unions, they know that their
good name is on the line. You can be sure that every car dealer present and
every car on offer are legitimate deals.
You can count on a fair
deal:
Both the prices of cars on display at community car sales and the loans offered
on them tend to be among the most competitive in the market. Especially in
communities with expensive lending rates, credit unions can be an important
alternative. They offer the best loan rates for financing a car in Jackson, MI and other
nearby communities, for instance.
Credit unions are more
responsive:
Credit unions are nonprofits, and exist to
offer customer service. Predatory lending rates, aggressive contracts and
unresponsive customer service are unheard of. For instance, unlike banks, the
loan contracts offered by credit unions are immensely flexible. They allow
consumers to set their own repayment period, no matter how short.
You get something like
dealer-direct financing:
Many consumers stay away from credit union financing for their automobile
purchases simply because these financial institutions do not place themselves
right inside car dealerships. With community sales, though, they get close.
There
are a couple of downsides
Credit unions aren't car
experts:
Unlike banks, credit unions do not see lending for car purchases as a primary
area of business. For this reason, they tend to offer fewer special deals.
You may not be eligible: Some credit unions
have strict membership rules, and only admit people who belong to certain
professions, unions, houses of worship and so on. If the credit union behind a
car sale tends to have restrictive membership policies, it could be difficult
for consumers.
All said, though,
community car sales organized by credit unions can be a great blessing. You can
easily find a quick deal, and be sure that the loan you get is among the most
competitive.
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